Another EC price.

Status
Not open for further replies.
A

AC\DC

Senior Member
Location
Florence,Oregon,Lane
Occupation
EC
So I got with a GC as soon as I started my business. So far they have been fair with me. I was asked to quote an old job back in October that the previous EC they used gave them.
For Replacing a Heater with new one
Adding a switch with outside light(owner supplied). Power is from lower Receptacle.
Rerouting receptacle over new door exposed walls.
He was going to charge $2200 :eek:
I am about half that and I am being generous to me.

My question is Does this type of thing happen a lot as far as price difference.
I don't want to be to cheap or to expensive. He is busy, though I have taken a lot of work for him but he has 4 van vs just me. Should I be 10% Cheaper ;)

Why would the GC give me this in the first place I don't like that I don't want my bid floating around its between me and them no one else.
 
AC\DC said:
Why would the GC give me this in the first place I don't like that I don't want my bid floating around its between me and them no one else.
Click to expand...

He's probably going to tell the other EC your price and try to get him to do it for that.
GC's are known for shopping prices....
 
Maybe the other contractor didn't want the job so bid it very very high. If hes gets the job its well worth it? I think there are better ways to go about it but its hard to tell why one contractor may be double another on smaller jobs. Certainly peaks the interest. Could be error in estimate, not really wanting the job, or knowing something about the job/customer that makes it undesirable. In my opinion you should bid what you need to cover your costs and profit. If you don't get jobs then re-evaluate your business process. Don't keep lowering your price out of business.
 
AC\DC said:
He was going to charge $2200 :eek:

He is busy

he has 4 van vs just me.
Click to expand...

Kinda sounds like he may know what he’s doing.

dont concern yourself with what other people charge, unless you’re the lowest guy in town.

Figure out what your rates need to be. Don’t guess. Do the math. Figure out what you need to charge to get where you want to be.

I can’t tell you what anyone in my town charges for service work because I don’t care.


Sent from my iPhone using Tapatalk
 
Either you are not charging enough, or he is charging too much, or both your price are correct. The correct price is based on your individual companies costs and profit requirements. If your costs and profit requirements are lower than his, then it's possible for you both to be correct.

What @brantmacga said above is correct.
[Don't] concern yourself with what other people charge. Figure out what your rates need to be. Don’t guess. Do the math.
Click to expand...

If you don't know how to do this, I suggest you read "How much should I charge" by Ellen Rohr. Available on Amazon.
 
I am at the rate I need to be. I am not the best at it but I have sat down several times and calculated my all my overhead. It’s programmed into my estimating software. Seeing that just made me wonder.

brantmacga said:
Kinda sounds like he may know what he’s doing.
Sent from my iPhone using Tapatalk
Click to expand...

Ya, he has been in business for 5 years. I am less than a year. Someday when I get the courage I want to be there.
 
The other EC may not want such a small job. Small jobs tend to gum up the works, so maybe he just charges extra for them so he does not have to mess with them much.

I generally don't like smaller jobs either. They can be a real PITA sometimes and there is often not much margin to work with.
 
petersonra said:
smaller jobs...there is often not much margin to work with.
Click to expand...

Funny, I find the exact opposite. I charge the same rates for all jobs, but I usually make more on small jobs than big ones because it's much easy to predict labor hours and material costs on small jobs. Big jobs tend to run over and I end up eating it because of the fixed price bid. If I was much better at bidding I would expect my margin to be the same on all jobs.
 
@AC\DC

Don't forget, the GC is not your buddy and he doesn't like you better than the next guy. If he peddles the other guy's bid he will peddle yours.

If a GC is smart (from his point of view) he will deal fairly with 2 or 3 ECs and keep them bidding against each other with fair pricing and take the best price. If he pits 1 EC against another and peddles #s he will soon fid himself in trouble.

Price thing the way you see them and stick to your guns.
 
AC\DC said:
I am at the rate I need to be. I am not the best at it but I have sat down several times and calculated my all my overhead. It’s programmed into my estimating software. Seeing that just made me wonder.
Click to expand...

Does that overhead include an insurance policy? retirement income? savings account for yourself AND your business for future expenditures?
 
When calculating your overhead make sure you include the cost of every labor minute and every other cost you give away free. If you don't charge for them, they are an overhead cost. You might not charge the customer for the two hours labor and travel expenses you spend doing site visits, researching methods and materials, estimating and bidding, or emailing and phone conversations, but those things cost money and need to be in your overhead. To make this clear in your mind, always imagine yourself directing employees to do this work. Employees expect to get paid when they do these activities. Your are your own employee. You should expect to get paid as well. Don't do anything for free.
 
Coppersmith said:
Don't do anything for free.
Click to expand...

Eh, sometimes you need to make sacrifices to get your foot in the door. A customer facing a decision between two electricians that are quoting the exact same price, but one has 1 yr in business and the other has 5 yrs in business, will go with more experience every time.

High price doesn't absolutely = high quality. People lie.
(1) Charge for everything VS (2) Charge for nothing... are both absolutist statements. There is an expansive gray area in between those two realities.
 
Last edited:
Jerramundi said:
Eh, sometimes you need to make sacrifices to get your foot in the door. A customer facing a decision between two electricians that are quoting the exact same price, but one has 1 yr in business and the other has 5 yrs in business, will go with more experience every time.

High price doesn't absolutely = high quality. People lie.
(1) Charge for everything VS (2) Charge for nothing... are both absolutist statements. There is an expansive gray area in between those two realities.
Click to expand...

I don't do 'loss-leaders'. The only freebies I give are to regular, established customers who pay on time.
 
480sparky said:
I don't do 'loss-leaders'. The only freebies I give are to regular, established customers who pay on time.
Click to expand...
Well, you gotta do something to get your foot in the door. If you come out the gate charging the same price as lifelong electricians, the customer will always hire the person with more experience. It's very simple logic. Maybe it just works for you because you're pretty ;)

Me, I got psoriasis all over my body, so my good looks ain't gonna cut it. I gotta rely on remembering that we're all members of the working class and a small favor here and there is a good thing, both altruistically speaking and for my business.
 
Last edited:
Status
Not open for further replies.
Top